Millions drained in latest Solana wallet hack

The hack on the Solana ecosystem came a day after Nomad Bridge was hacked and the attacker made off with about $191 million.

User funds amounting to $8 million have been siphoned out by unknown hackers from Solana-based “hot” wallets including Phantom, Slope, and TrustWallet, making the SOL ecosystem the latest target of cryptocurrency hack. SOL is the native token of the Solana network.

According to blockchain auditors PeckShield, the theft is most likely the result of a “supply chain flaw” that has been exploited to steal user private keys from wallets in the early hours of August 3. The reported loss is believed to be roughly $8 million.

While the exact cause remains unknown, the hack predominantly affected mobile users. A trusted third-party service may have been hacked in a so-called supply chain attack if the attacker managed to sign (i.e., start and authorize) transactions on behalf of users.

Phantom, Magic Eden confirm hack

Wallet provider Phantom said it was working with other teams to get to the bottom of the issue, but did not “believe this is a Phantom-specific issue” at this stage.

Magic Eden, marketplace for Non-Fungible Tokens, confirmed the hack and said it “seems to be a widespread SOL exploit at play that’s draining wallets throughout the ecosystem.” Magic Eden asked users to revoke permissions for any suspicious links in their Phantom wallets.

Non-fungible tokens (NFTs) are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. Blockchain is a shared digital ledger. Unlike cryptocurrencies, NFTs cannot be traded or exchanged at equivalency.

SOL down 8% following hack

According to CoinMarketCap, which also cited a 45 percent increase in trading activity over the past 24 hours, news of the hack caused an 8 percent decline in Solana’s value. The price of SOL has since rebounded and it is currently trading down around 4 percent at 38.97, according to data from CoinMarketCap.

The hack on the Solana ecosystem came a day after Nomad Bridge was hacked and the attacker made off with about $191 million.

The cross-chain bridge allows transfers between Avalanche (AVAX), Ethereum (ETH), Evmos (EVMOS), Milkomeda C1 and Moonbeam (GLMR).

According to aggregator DeFi TVL and analytics provider DefiLlama, the total amount taken stood at $190.7 million. After the hack, the total value locked with the project is $5,900, according to DefiLlama.